The World Bank has approved an additional $1.57 billion loan to support Nigeria’s development initiatives to address governance challenges in education and healthcare, improve primary healthcare services, and enhance climate change resilience.
The Washington-based bank disclosed this in a statement on Monday.
In the statement, Dr. Ndiamé Diop, World Bank Country Director for Nigeria, noted that investing in the health and education of Nigerians is crucial for improving future employment opportunities, productivity, and reducing poverty.
Diop said: “Effective investment in the health and education of Nigerians today is central to increasing their future employment opportunities, productivity, and earnings, while reducing poverty of the most vulnerable.
“This new financing for human capital and primary healthcare will help to address the complex difficulties faced by Nigerians, especially women and girls, around access and quality of services, but also the governance arrangements that also explain these difficulties.
“The SPIN program is timely and will protect Nigerians from floods and droughts in the areas where it will be implemented while enabling an increase in hydropower generation.
“The direct positive impact of this project on people and livelihoods is enormous. The World Bank is pleased to work with the government and other stakeholders to deliver this program.”
Persecondnews reports that the financing package comprises a $1.5 billion loan and a $70 million grant, aimed at strengthening Nigeria’s human capital and building resilience against climate threats.
Three major projects each will receive a portion of the loan.
The HOPE-GOV program will receive $500 million to improve governance in the education and healthcare sectors.
This initiative aims to address underlying issues in financial and human resource management that have hindered service delivery.
The Primary Healthcare Provision Strengthening Program (HOPE-PHC) will receive an additional $570 million.
This project focuses on reducing maternal and under-five mortality rates by providing quality reproductive, maternal, newborn, child, and adolescent health services.
Approximately 40 million Nigerians, particularly those in underserved areas, are expected to benefit from this program.
The remaining $500 million will be dedicated to the Sustainable Power and Irrigation for Nigeria Project (SPIN).
This initiative aims to protect Nigeria from climate-induced challenges such as floods and droughts through enhanced dam safety measures, improved water resource management, and expanded irrigation services.
This new loan comes as financial experts express concerns over Nigeria’s increasing debt burden, which stood at N121.67 trillion as of March 2024.
The country’s debt stock has grown by 20.6% year-over-year and 8.3% quarter-over-quarter. Experts warn that the rising debt service obligations may hinder Nigeria’s economic development.
The World Bank’s approval of this loan demonstrates its commitment to supporting Nigeria’s economic policies, particularly Tinubu’s initiatives.
In June last year, the World Bank approved a $2.25 billion loan facility to back these policies.
Nigeria faces significant challenges in addressing its infrastructural deficit, with financial experts calling for prudent management of the country’s debt burden.
The government must balance its development initiatives with the need to reduce its debt burden and ensure sustainable economic growth.
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